Amazon to spend “billions” of dollars on “thousands” of satellites
Ecommerce giant Amazon is exploring new avenues for growth. Over the years, it’s colonised a plethora of markets, the most obvious being books and ebooks, cloud computing, and online retail. Now, it’s setting its sights higher: sky high, in fact. Founder and CEO Jeff Bezos recently detailed plans for “Project Kuiper” to reporters – and they involve spending billions of dollars on thousands of satellites to provide broadband internet connections around the globe.
Amazon’s share price has appreciated by 20% so far this year
Source: Yahoo Finance
Speaking at Amazon’s re:MARS conference in Las Vegas last Thursday, Bezos said that Amazon’s massive scale was rendering smaller initiatives “less meaningful” – Project Kuiper is the kind of large-scale endeavour that the company needs to engage in, he added.
He told listeners that Kuiper is “a very good business for Amazon,” because “it’s multiple billions of dollars of capex. Amazon is a large enough company now that we need to be doing things that, if they work, can actually move the needle.”
Bezos says that there is a social element to this, as internet connectivity may one day be a fundamental right. Project Kuiper will use 3,236 satellites to beam broadband around the world from low Earth orbit positions. Bezos added: “By definition you end up accessing people who are kind of, underbandwidthed. Rural areas, remote areas. And I think you can see that, going forward, access to broadband is going to be very close to a fundamental human need.”
From the perspective of tech and ecommerce, it’s also good strategy – after all, when you’re the size of a company like Amazon, to find new customers, you need a connected global population.
Dominion holds Amazon in its Global Trends Ecommerce Fund.
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